AZ Free Enterprise Club Press Release

UPDATE: As of today, June 24th, it looks like this proposal is dead in its tracks! The commerce committee hearing scheduled to hear the bill has been cancelled! Glory be...there is still a bit of reason left among my colleagues.

Arizona Legislature Should Reject Stimulus Package
Christmas Tree of goodies will hurt, not help, Arizona economy

Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to an “economic stimulus” package that reportedly consists of subsidies for a downtown entertainment district, solar production, and research and development. The package also intends to grant Pima County the authority to hold an election seeking a sales tax increase on restaurants, hotels and rental cars to enhance Tucson-area spring training facilities. The package, the details of which have not been released, is being formulated by a handful of special interest groups and lobbyists.

“There is no way a package larded down with this much pork should ever get off the ground,” said Steve Voeller, president of the Club. “not only is this not economic stimulus, it’s not even decent public policy. Tax credits and exemptions are exactly like spending items. Proponents of this package want to pay people for these activities. Do they need to be reminded that the state faces a $2.2 billion budget deficit?”

The plan does not address the looming statewide property tax increase set to occur next year.

“The state faces a $250 million tax hike next year since the governor vetoed a bill to prevent it from occurring. The notion that you can bestow tax subsidies on a few developers and companies and think you’re going to turn around the economy, all while ignoring a massive tax hike on millions of Arizona taxpayers, is sadly absurd. You want to create jobs? Let’s start by not raising taxes.”

In addition to the veto of the property tax repeal, the governor and some business leaders are pushing for a 17.8 percent statewide sales tax rate increase for roads, trains, light rail, open space, non-profit groups, and other endeavors.

“The policies coming out of the state legislature should scare everybody concerned about the status of the state’s economy.”